You might be familiar with 401k, 403b, 457, or maybe even 529. These are all financial accounts defined by laws in the income tax code of the United States. There is another type of financial account defined in the tax code that resides in section 7702. This is the section that defines how life insurance is taxed.
Interestingly, life insurance existed before the income tax code of 1913 existed.
Because of the immense social value life insurance provides, section 7702 holds some of the greatest tax freedom of the entire income tax code.
Here are just a few of these freedoms…
1. The income tax-free compounding of money until the day you die
2. The income tax-free ability to access the gains
3. The income tax-free value at death
4. No ongoing IRS reporting, unlike Government sponsored accounts
The promotion of retirement savings in 401k and other Government sponsored plans has overshadowed the immense freedom of section 7702.
Before the Government sponsored 401k and IRA plans existed, Americans would save in 7702 plans.
They were called “Endowment” plans. These were a savings plan that paid dividends with some life insurance attached. At retirement these were then converted to lifetime pension income.
These types of plans are being rediscovered. We call them “Financial Bunkers” for all the reasons you will learn here.
Today these specially designed accounts are being used to bury massive amounts of money and emancipate it from income taxes forever. They are the greatest secret of the commercial banks, and the very wealthy.
Financial Bunkers are being used for tax-free retirement income, college funding, tax-free wealth accumulation, privacy, and advanced estate planning and more.
The Financial Bunker is the missing piece to nearly every American’s financial plan.
In an uncertain world, the Financial Bunker provides predictability, tax advantages, and real financial independence.